812.512/3499: Telegram
The Secretary of State to the Ambassador in Mexico (Morrow)
364. Following from Consul at Nogales, dated May 7.
“The Stearns Marketing Company of Nogales, shippers of winter vegetables operating at Los Mochis, Sinaloa, have been ordered by the Internal Revenue Office at the latter place to pay without delay more than nine thousand dollars in production taxes. Of this amount considerably more than half were actually paid to the revolutionists while they were in power, the remainder being paid by check upon which payment was withheld. The company is willing to pay the latter to the reestablished government but protests the payment of the former. Mr. Stearns desires to know whether the instructions with regard to state of Sonora as outlined in the Department’s May 3, 6 p.m.74a apply to Sinaloa as well.”
Please request that appropriate authorities at Sinaloa be instructed by telegraph not to insist upon payment of taxes which have already been paid by American citizens to persons exercising de facto authority and if you deem it advisable reiterate the statement contained in the last paragraph of Department’s 217, March 29, 6 p.m.
Department’s May 3, 6 p.m., referred to above, was in response to Consul Damm’s undated telegram mentioned in Department’s 356, May 3, 5 p.m. Consul is being advised that instructions in reference apply to all cases where demand is made for payment of taxes which have already been paid by American citizens to de facto authorities.
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